Thoughts on Liberation/Tariff Day 2nd of April 👇
The 2nd of April which Trump calls "Liberation Day" is when all the (reciprocal) tariffs on a variety of countries are supposed to come out. We don't have a clear scope of the severity of it but the market has been embracing for the worst. Hence the big sell off. Especially in stocks. Markets never like uncertainty.
This administration has been doing quite a few "leaks" of plans before deadlines actually arrive. Whether it is intentional or not (lol).
With the EU coming out on Friday willing to make "Concessions" on tariffs and Trump also saying he wants to make deals, it would not surprise me to see some details or news regarding the tariffs come out ahead of the 2nd of April.
I think there is some hope that there will still be some deals made prior to the 2nd of April, of course if nothing happens and the tarrifs are pretty bad by the time they come out, we'll likely see more weakness. I do personally think even if implemented, a lot of the tariffs are mainly negotiation tools and likely won't last very long. But we'll see.
Obviously if we hear about deals being made prior e.g. "Trump: I just made a great deal with the EU, they will lower/remove some of their tariffs they've on the US and I will drop etc etc''.
Anyways, those are just some thoughts, I am not a tariff expert and will just react to new developments and try to monitor how the market digests it all.
With events like these, and how random the headlines have been, you can understand that a lot of volatility is likely to occur. There's also a big headline risk which could send the market in any direction. So be careful with your stops.
I do think this can be a great environment for news trading if you were to see something new come out and react quickly.
For now, enjoy your weekend :)
Here’s the myth of the rich not paying their fair share in taxes.
Bottom 50% only pays 2.3% of total income taxes paid
Top 50% pays 97.7%
And the top 1% pays 42.3%
Meanwhile, Kamala’s new plan to tax 25% of $100m+ unrealized capital gains would destroy all the 401ks and pension plans in America.
Elections and bad policies have consequences.